Over a sixth of global trade of nearly $24 trillion in 2023 is likely to be affected, as the United States imposed a 10 percent baseline tariff on all goods entering its territory on April 3.
The US imported $3.8 trillion worth of goods in 2023, as the global imports settled at a little over $24 billion. With retaliatory tariffs from China, Europe, Canada and other countries, the total trade in jeopardy is expected to cross $4 trillion.
Machinery, transport and chemicals are the US’ top imports which accounted for nearly 52 percent of its total imports in 2023. While China, Mexico and Canada were the top importers in each of these categories, India was the US’ sixth largest importer in chemicals.
In fact, of the 16 large categories that the US imported, India was among the top 10 importer in nine. China was among the top importer in 15 of the 16 categories, whereas Canada figured in 13.
Among these categories 43 nations figured as US’ top importers.
US tariffs do not discriminate between nations that it runs a surplus with as well. In 2023, the country ran a deficit with 110 nations, as many as it ran a surplus with.
US President Donald Trump made good on his promise to impose reciprocal tariffs on countries, as he unveiled a 10 percent baseline rate on all goods entering the US territory, with some countries facing higher rates as well.
India, which exports over $80 billion worth of goods to the US, is expected to face 26 percent tariff, as the US president noted that the total levy on US goods including non-tariff barriers was 52 percent in the case of India.
“For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” the US president said, as he made a pitch to get jobs back and return America to its heydays.
China will face a levy of 34 percent, whereas European Union is expected to face a tariff of 20 percent.
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